Vedanta-Owned Hindustan Zinc Fined Over ₹10 Lakh By BSE And NSE For Non-Compliance

The mining company Hindustan Zinc, which operates as a Vedanta subsidiary, received over a ₹10 lakh fine from both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) on March 18, 2025. Hindustan Zinc received the fine because it failed to follow SEBI requirements about having independent directors serve on its board.

The regulatory fine from BSE and NSE did not cause any long-term effect on Hindustan Zinc’s stock value as its market price increased from opening to closing on that day.

Reason For The Fine

A notice for penalty came to Hindustan Zinc from both BSE and NSE through an exchange filing on March 17, 2025. SEBI enforced the fine upon the company because it violated the requirements of Regulation 17(1) of the SEBI Listing Regulations.

Facilities for listed companies include mandating them to subscribe to a minimum number of independent directors for their board structure. The failure of Hindustan Zinc to maintain the specified director requirements resulted in both BSE and NSE ordering the penalty.

Management from the company received this notice to explain that the penalty originated from the composition issues within their Board of Directors unit. Hindustan Zinc assured investors that the fine would have no important effects on either its operations or its financial stability.

Penalty Details

Each stock exchange issued the same fine to Hindustan Zinc.

• Hindustan Zinc received the total fine amount of ₹5,42,800 from BSE with GST included.
• NSE also fined ₹5,42,800.
• Total penalty amount: ₹10,85,600 (₹10.85 lakh).

Hindustan Zinc Share Price Performance

The regulatory fine failed to create any negative impact on Hindustan Zinc’s share price. Shares of Hindustan Zinc finished 0.30% above the previous closing level of ₹435.30 at ₹436.60 during the March 18 market trading day.

The penalty notice was cited during the afternoon session of the stock market.

During the last year, the stock price has risen above 48% while reaching its highest point at ₹807 on May 22, 2024, and its lowest value at ₹289.50 on March 18, 2024.

Stock Market Returns

The strong investor return performance of Hindustan Zinc can be observed through its financial record.

• The stock generated returns exceeding 220% throughout the last five years of market operation.
• The stock has achieved a 48% increase during the previous twelve months.
• The stock has declined 1.72% since the beginning of the current year.
• During the last month, the stock market recorded a share value increase of 6.80%

A penalty against Hindustan Zinc because of the absence of independent directors on its board is not expected to create major problems for its operations. Stock market returns from the company remain robust because the business produces elevated returns for its investors.